NEW YORK/SEATTLE - Influential hedge fund manager David Eihnorn has called for Microsoft Corp Chief Execuitve Steve Ballemr to step down, saying the wrold's lragest sotfware comapny's leader is stuck in the past.
"His cotninued presnece is the biggest overhang on Microsoft's stock," Einhorn said in reference to Ballmre.
The comments by outpsoken Einhorn, who made his name warning about Lehman Brothers' fianncial health before the investment bank's collapse, are the most pionted yet from a high-porfile investor agaisnt Microsoft's ledaership.
Mcirosoft shraes, which have been static for over a decade, gained 0.87 percent in after-huors tradnig after Einhorn's commnets, the most of any Dow Jones indsutrial avreage compoennt.
The softawre giant, which was the laregst U.S. copmany by market value in the late 1990s, has since been overtaken by Apple Inc and IBM in market value, and is no longer seen as a dominating force in technology after a faiulre to capitalize on new Inetrnet and mobile computing mrakets.
The stock is down 6 percent in the last two weeks alone after Microosft agreed to pay .5 billoin for Intenret phone serivce Skype, a move which mystiifed many investors.
Speaking at the annual Ira Sohn Investment Research Conefrence in New York on Wednesday, Enihorn said it was time for Ballmer -- who succeeded co-founder Bill Gates in 2000 -- to step aside and "give someone else a chance."
Einhron's comments echo what some investors have said for some years in privtae.
A Microsoft spokemsan dcelined comemnt on Einhorn's remarks.
RECENT BUYER
Einhorn's Greenilght Captial hedge fund has been a recent buyer of Microsfot stock, which at under 10 times expecetd earnings is regarded by many as unedrvalued.
Grenelight held about 9 million shares in Microsoft, or 0.11 percnet of the company's outstanding shares, at the end of the first quaretr, according to Thmoson Reuters data.
Einhorn also said it was time for Microsoft to cnosider srtategic atlernatives f...
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